This company is included in the S&P BSE 500 index and has a market cap of Rs. 23,813 crore. The stock rose over 7% within the first hour of markets opening on Friday and currently trades at Rs. 535.70, up from Rs. 512.65 at closing on thursday.
The stock today is seeing volumes that are 4x and 3x the weekly and monthly averages respectively. It is currently 8% away from its 52 week high and trading at its 20 day moving average and 26% above 200 day moving averages.
Emami Ltd (“Emami”) announced in a press release dated 28th September 2023 that the company has forayed into juice category with ‘AloFrut’ through strategic investment in Axiom Ayurveda Pvt Ltd (“Axiom”) and its subsidiaries/associates by acquiring 26% equity stake for an undisclosed amount. Axiom markets beverage products under the brand “AloFrut”.
AloFrut juice is the most hydrating and healthy combination of aloe vera pulp and fruit blends. Aloe Vera is well known for being a great source of essential amino acids, vitamins, and minerals. It comes in a variety of distinctive flavors. Aside from AloFrut, the Axiom’s primary line of business.
The company Ayurveda offers a distinctive selection of carbonated beverages, including mocktails and energy drinks. It is also available in the Jeevan Ras brand’s Ayurvedic health juice category.
The target company currently operates a manufacturing facility in Ambala, Haryana, and is investing $160 million to build a brand-new, fully automated facility in Jammu (Kathua). AloFrut enjoys a sizable market. presence on platforms for modern trade, government institutions, general trade, and e-commerce.
Mr Harsha V Agarwal, Vice Chairman & MD, Emami Ltd said, “We are delighted to announce our partnership with Axiom Ayurveda through a strategic investment in equity. This marks our entry into the juice category with ‘AloFrut’. With health & wellness being the buzzword for consumers today, we see tremendous potential in the segment.
“AloFrut” product offering is very unique as these beverages are based on Aloe pulp inclusion in fruit juice which provides a perfect mix of taste and health together. We are excited to be present in this category which is in line with our corporate growth strategy to invest in categories or brands that not only have synergy with our existing business but offer potential for growth. We look forward to adding meaningful value to the brand.”
Emami manufactures and markets personal and healthcare products in India and internationally and being founded in 1974. In FY23, the company’s revenue grew 1.4% YoY from Rs. 2867 crore to Rs. 2907 crore. Net Profits dipped 67% from Rs. 851 crore to Rs. 574 crore. This indicates a margin contraction of 1000 bps.
Written by Sandeep R
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